Cash Flow – Personal Finance Blog – Money Advice

Suffering from a lack of cash? It’s likely that you don’t follow a budget that reflects your earnings. I saw this article over at Yahoo Finance and thought it made some good points for folks who aren’t quite where they need to be cash flow wise. Here are the major points:

Avoid Immediate Disasters

Don’t be afraid to request bill extensions or payment plans. My take, it’s much better for you to be proactive and contact your creditors rather than wait for them to call you-your leverage goes down dramatically.

Review Credit Card Payments and Due Dates

If you’re only making the minimum payments on your credit cards, you are flirting with a disastrous credit score. We all know this by now but it’s so critical to pay attention to this.

Prioritizing Bills

All bills must be prioritized, this can get real tough. But don’t screw around with the basics, phone, water, lights and the roof over your head. If possible, pay yourself something first-make this a habit even in the toughest of times.

Ignore the 10% Savings Rule, For Now.

This is where I don’t agree with the article. Read the Richest Man in Babylon for reinforcement of this principle!

Review Your Past Mont’s Spending

They recommend online banking and budgeting software. We are in complete agreement on this one. Don’t be afraid to force yourself to review your spending-parts of it can be very painful to acknowledge ;(

Eliminate Unnecessary Expenses

You know what you have to cut out. Either make the tough cuts or figure out how to earn additional income. Look to Personal Finance Bloggers for some great ideas!

Journal New Budget for One Month

Great idea here! Nothing tells the truth like seeing it in black and white. Not only that, this forces you to be honest with yourself every month.

Adjust Spending as Needed

After journaling for a month, review your budget and see where it isn’t working. Make any necessary judgements and remember this is not cast in stone-adjustments are necessary.

Seek Out New Sources of Income

This is my favorite! Again, scan the blogs of Personal Finance bloggers for some clever ideas.

That’s it, the best thoughts for turning your cash flow disaster into a waterfall of financial success 😉